AEM net profit more than doubles to $3.1 million
AEM chief executive Samer Kabbani said the company has developed the next generation of test technologies.
SINGAPORE – AEM Holdings posted a 245 per cent increase in net profit to $3.1 million for the half-year ended June 30, from $895,000 the year before.
Revenue for the period rose 10 per cent year on year to $190.3 million, up from $173.6 million previously.
The semiconductor test-equipment maker said on Aug 13 that the increase was driven by a higher volume of sales to its anchor customer, as well as the pull-in of orders from other clients.
The revenue figure is in line with its revised guidance for the first half of the financial year, which was raised to between $185 million and $195 million, from an earlier forecast of $155 million to $170 million.
The stronger bottom line is the result of the absence of one-off losses of the year before, when other expenses in the first half of Financial Year 2024 included a $2.3 million loss on the disposal of an associate.
Gross profit for the first half of FY2025 rose 11 per cent to $48.3 million, from $43.4 million a year ago.
Revenue for its test-cell solutions segment rose to $118.6 million, up 18.8 per cent from a year ago.
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AEM said that the higher revenue was due to the successful production deployment of the group's semiconductor tester solution, AMPS-BI, together with pull-in of orders into the first half-year.
However, contract manufacturing revenue declined by 4.7 per cent to $67 million for the first half of 2025, due to reduced demand from some end customers amid global trade uncertainties.
The group generated an operating cash flow of $46.4 million in the first half-year, largely from the consumption of inventories.
Earnings per share for the period rose to $0.0098 per share, from $0.0029 a year earlier.
For the second half of this year, the group forecasts revenue to be in the range of $170 million to $190 million, broadly in line with the first-half revenue.
This range reflects anticipated growth in the shipment of its AMPS-BI in the fourth quarter, although this may be partially offset by the timing of certain orders and potential foreign-exchange fluctuations, said the group.
AEM's recently-appointed chief executive, Mr Samer Kabbani, said that the company has developed the next generation of test technologies, creating a strong foundation for the next phase of AEM's journey.
He said: 'We are near the stage of our technology road map and customer engagements where these innovations are ready to scale into high-volume production. We remain engaged with our customers to ensure our solutions address their most critical challenges as we enter this exciting phase of execution and expansion.'
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He was also busy growing the business in China over the last decade. The eldest of three sons – who clinched the top accolade, Businessman of the Year, at the 2024 Singapore Business Awards – returned during the Covid-19 pandemic to spend time with his ageing parents. His younger brothers Keith Wong, 49, and Kelvin Wong, 46, remained in Singapore to grow the business while Mr Wong was in China. Co-founder and chief operating officer Keith Wong leads the group's creative vision – from product design to store architecture to the overall brand aesthetic – while Kelvin Wong, who joined the family business later, heads bag design and technology. Reflecting on his almost 35-year journey in shoes, Mr Charles Wong credits the brand's success in international markets to a mix of good timing, good luck and a healthy risk appetite. After C&K was established in 1996 as a shoe label independent from the Ang Mo Kio store, Mr Charles Wong and Mr Keith Wong opened their first boutique in Amara Shopping Centre. Cash-strapped, they renovated it on a budget just shy of $50,000, and bought from their suppliers on credit. The Asian financial crisis struck soon after, but instead of getting spooked, they strode forward. Their father's friend, who operated and was scaling down the Giordano chain of clothing stores, offered to let them take over the lease of his unit in Causeway Point mall. A young Charles Wong in 2008. His brother and co-founder Keith, who leads the group's creative vision, has always been more media-shy. PHOTO: LIANHE ZAOBAO FILE Rent was steep – $20,000 a month, Mr Charles Wong recalls. 'I thought for a week if I should take the risk. The uncle said, 'If you don't jump, you'll never jump.' So, I took the first jump at a high rental store.' Their forecasted annual revenue of $60,000 ended up closer to $100,000. 'It was a good motivation factor, that the first risk we took was right.' Risky business Risk would turn out to be an enticing constant in the brothers' lives. During the financial crisis, an Indonesian expatriate customer proposed franchising the brand to Indonesia once the market improved. Then in his 20s, Mr Wong was apprehensive in view of Indonesia's unstable economy, fresh from a string of bombings. The customer goaded him into agreeing by asking: 'You served national service, right? So, why are you scared? You're military trained.' The Jakarta store, their first one overseas, was a huge success – and has led to 43 stores in Indonesia today. 'You never know what you don't know, so you just have to keep an open mind,' says Mr Wong. Charles & Keith's first Indonesia store in Mall Taman Anggrek opened in1998. 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